Global Dropshipping Market Overview
The key driver impacting the dropshipping market is the growth in the demand for dropshipping services is inclined mainly by the growth of the e-commerce industry. For instance, For instance, the most recent UN trade and development body(UNCTA- 2020) report shows that e-commerce sales across the world were $25.6 trillion in 2018, which augmented by 8% from 2017. There were about 1.4 billion people globally who shopped online in 2018. Countries like China, the United States, and the UK are the leading countries in e-commerce sales to consumers. B2C e-commerce was recorded at $4.4 trillion, a rise of 16% from 2017. Moreover, the growing tendency of cross-border e-commerce trade contributes to the dropshipping market growth in the coming years.
According to Value Market Research, the global dropshipping market size was valued at around USD 282.38 billion in 2023 and is estimated to grow at a CAGR of about 24.4% during the forecast period 2024 to 2032.
The increasing penetration of smartphone penetration with rising consumer disposable income is likely to augment the dropshipping demand in the forecast period. For instance, As per the Pew Research center 2019 report estimations, over 5 billion people have mobile devices, in which half of these connections were smartphones. The Internet Innovation Alliance report shows that In 2017, smartphone users number in the United States was estimated to reach 224.3 million. By 2022, smartphone users number in the U.S. is likely to have 270 million. However, the data security concerns may hamper the market in the long run. Also, the risk of data breaches and cyber attacks negatively impacts the market. The current industry trends, such as escalating investments by the key players in the e-commerce sector and a growing number of shoppers looking for online shopping platforms, are expected to offer several lucrative market opportunities for the key players.
The Dropshipping market is vast, with many local and global players. The Dropshipping market is extensive, with many domestic and international players. The key market leaders follow several strategies to climb their market status, such as extending their product base, purchases, contracts, expanding product portfolio, product upgrades, and amalgamation to increase their market share worldwide. For instance, in 2017, Shopify Inc., an e-commerce platform, acquired a dropshipping service provider Oberlo. This acquisition will help Shopify to enter the market and enhance its market position. The important players studied in the report include SaleHoo Group Limited, AliDropship, Doba, Inc., and Oberlo.
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In this research report, the dropshipping market is segmented by product and region.
Analysis by Product:
By product, the report is categorized into Toys, Hobby, & DIY, Furniture & Appliances, Food & Personal Care, Electronics & Media, and Fashion. The electronics segment dominates the product segment with over 30% in the forecast period. It is due to the growing usage of electronic products among consumers. Moreover, the growing number of e-commerce websites selling a huge range of electronic products at lucrative offers and discounts contribute to the electronics segment growth in the forecast period.
Analysis by Region:
In the regional outlook of the global dropshipping market, the Asia Pacific region dominates globally with a 25% market share in the forecast period. It is due to the rising number of e-commerce companies in the region. Moreover, expanding online retailers across the Asia Pacific region due to growing internet connectivity through the increasing smartphone adoption contributed to tremendous market growth across the Asia Pacific.
Market Segmentation covered in the Report:
By Product
- Toys, Hobby, & DIY
- Furniture & Appliances
- Food & Personal Care
- Electronics & Media
- Fashion
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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